The retail sector is beginning to stabilise with sales remaining steady in September, according to the Confederation of British Industry's (CBI) monthly Distributive Trades Survey.

The survey found that 39% of retailers reported that year-on-year sales volumes rose in September, while 36% said they fell. The resulting balance of +3% was better than expected, and follows four consecutive months of falling sales.

"After such a difficult summer, it is encouraging to see signs that conditions in the retail sector are stabilising. However, with unemployment rising, wage growth low, and consumers building up their savings, spending is likely to remain subdued for some time," said Andy Clarke, Chairman of the CBI Distributive Trades Panel.